Amazon (AMZN) is stepping up its game in the increasingly competitive environment of online delivery.
As major retailers such as Walmart and Target have recently expanded their same-day delivery services and cut prices on thousands of items ahead of the holiday season, Amazon is opting to take an unusual approach to make its services more appealing.
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One area that Amazon is reportedly focused on is getting packages into the hands of its customers more quickly. In order to accomplish that, the retailer allegedly believes that its delivery drivers will have to sport an unusual pair of eyewear while on the job.
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Amazon is reportedly developing smart eyeglasses for its delivery drivers to will help them navigate through neighborhoods, gates, buildings, elevators, etc., more quickly, according to a new report from Reuters.
The retailer is envisioning the glasses will contain a small screen on one of its lenses that would provide drivers with “turn-by-turn navigation,” which is intended to help take seconds off of the amount of time it takes to make each delivery.
The glasses would also have the ability to take photos of delivered packages, which will be sent to customers as proof of delivery.
“We are continuously innovating to create an even safer and better delivery experience for drivers,” said an Amazon Spokesperson in a statement to TheStreet.
Seattle, USA – Amazon Prime Now Delivery van and driver downtown on 4th avenue late in the day.
400tmax/Getty Images
Amazon faces hiccups with the development of its delivery glasses
While the glasses are still in development, Amazon has reportedly encountered a few roadblocks with the technology. According to sources who spoke to Reuters, Amazon is struggling to make the battery life of the glasses last for a full eight hours. It is also facing challenges with making them lightweight enough for drivers to wear comfortably on their shift.
The retailer has also stumbled into issues with being able to quickly gather complete data on the houses, streets, sidewalks and other locations their drivers travel to in order to make deliveries.
In addition, Amazon also faces obstacles with encouraging its drivers who already wear prescription glasses to sport the digital eyewear.
If Amazon fails to perfect the delivery glasses or if the development causes any type of financial strain on the company, they risk never being released or “delayed indefinitely,” according to Reuters.
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While the technology is intended to speed up delivery times for customers, it also appears that it will allow the company to increase surveillance of its drivers. Amazon drivers are already monitored through cameras that are embedded with artificial intelligence in their delivery vans.
The cameras record drivers 24/7 while they’re on the job, and it has four lenses that are able to film the driver, the road and the sides of the vehicle in order to capture safety violations such as distracted driving.
Some Amazon workers have criticized the camera system for mistaking certain human behaviors as safety violations and for being an excuse to micromanage drivers.
Amazon battles major competitors in the world of online retail
Amazon’s plan to develop smart glasses for its drivers also comes after the company’s CEO Andy Jassy stated during an earnings call on Aug. 1 that delivery speeds for Amazon Prime members have reached a record high.
“So far this year, our speed of delivery for Prime customers has been faster than ever before, with more than 5 billion units arriving the same day or next day,” said Jassy during the call.
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He also claimed the company will be “further building out” its same-day facility network in order to increase package delivery speeds.
It is no surprise that Amazon is focusing on boosting its delivery speeds as one of its main competitors, Walmart (WMT) , recently reported a 22% year-over-year increase in its online sales during the second quarter of 2024.
Walmart has also recently expanded its same-day delivery services by launching same-day pharmacy delivery in six states.
Los Angeles CA – Image of Amazon packages.
Jorge Villalba/Getty Images
Target (TGT) is another major rival that recently saw a boost in online sales. According to the company’s second-quarter earnings report for 2024, it revealed that it faced an almost 9% year-over-year increase in online sales, and its same-day delivery services also saw double-digit growth.
“We saw high single-digit growth in our digital comps in Q2 and even faster growth in same-day services, led by Drive Up and Target Circle 360, both of which grew in the low teens,” said Target CEO Brian Cornell during an earnings call on Aug. 21. “Same-day services now account for more than two thirds of sales, with the biggest contribution from Drive Up, which generated sales of more than $2 billion in Q2 and more than $4 billion so far this year.”
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